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Tuesday, July 17, 2012

Numbers up again on rising oil prices

Media release

Conception Bay South, NL, July 17, 2012- Consumers in Newfoundland and Labrador will see another increase to most fuel prices this week when the Public Utilities Board adjusts prices this Wednesday at midnight. That news comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

"Both West Texas Intermediate and Brent crude oil prices are showing some slight gains in the past three weeks with WTI increasing almost twelve dollars a barrel since June 28th. Refined commodities like gasoline have also increased since then by about 25 cents a US gallon. Other refined commodities like heating and stove oils, as well as diesel fuel, have also risen along with oil prices," Murphy said.

"Oil prices have increased somewhat because oil inventories have been hit by extra refining need with the driving season. With refineries needing to keep pace with demand, they're drawing on extra inventory that has reached record levels not seen since the 90's. Refiners have increased output by almost seven percentage points more but they also have been drawing down close on two million extra barrels a week to process and put on the markets to keep up with need in the process.

The numbers
"Heating and stove oils are predicted to increase by 1.9 cents a litre, with Diesel fuel to also increase by 1.5 cents a litre. Gasoline numbers show a 2.4 cent a litre increase on the way with prices breaking the $1.30 a litre mark to sit close to $1.31.5 cents a litre as the new regulated maximum. There is still a little competition out there, so consumers can still see prices well below that in the northeast Avalon area, and they're encouraged to shop around and pass the word about who is selling for less. That way, we can help keep the competitive nature of the market as it is now".

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
Twitter: @GeorgeMurphyNDP


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